Mumbai, Nov 27 (PTI) The rupee depreciated 14 paise to settle at 89.36 against the US dollar on Thursday amid a firm greenback due to its higher demand from importers and banks.
However, lower crude oil prices in the international market supported the local currency, forex experts said.
At the interbank foreign exchange market, the rupee opened at 89.19 and touched the intra-day low of 89.40 against the greenback. The unit closed the session at 89.36, registering a loss of 14 paise from the previous close.
The rupee settled flat at 89.22 against the greenback on Wednesday.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said the rupee traded weak, holding a sideways trend as the dollar index remained below 100.
"Possible positive FII inflows may continue, with secondary markets staying strong over the last couple of days and hovering near all-time high levels, offering some cushion to the rupee. The rupee is expected to remain in a range of 88.75-89.55," Trivedi said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was 0.11 per cent higher at 99.63.
Analysts attributed the strength in the greenback to its increased demand from importers as well as banks for month-end trade payment settlements.
Brent crude, the global oil benchmark, fell 0.03 per cent to USD 63.11 per barrel in futures trade.
On the domestic equity market front, the Sensex rose 110.87 points or 0.13 per cent to settle at 85,720.38, while Nifty closed 10.25 points or 0.04 per cent higher at 26,215.55.
Foreign institutional investors sold equities worth Rs 1,255.20 crore on a net basis on Thursday, according to exchange data.